Scansource, Inc. · NASDAQ:SCSC

Scansource — Investor Presentation (May 2026)

37 slides from Scansource's investor presentation, May 2026

1. Slide 1: ScanSource, Inc. Investor Presentation May 2026

   ScanSource, Inc. Investor Presentation May 2026

2. Slide 2: Safe Harbor and Non-GAAP

   Safe Harbor and Non-GAAP Safe Harbor Statement Non-GAAP Financial Information This presentation contains “forward-looking” statements, including our FY26 outlook, mid- In addition to disclosing results that are determined in accordance with United States term goals, market growth rates, growth oppor

3. Slide 3: Differentiated Leader. Pivoting to Stronger Growth.

   Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines Growth 4 Clear capital allocation principles 5 The growth path going forward 3

4. Slide 4: Differentiated Technology Distribution Leader

   AT A G L A N C E Differentiated Technology Distribution Leader $3B+ ~25,000 ~500 ~2,100 92% 13.6% Net Sales Channel Sales Technology Total Net Sales by Adj. ROIC* Partners Suppliers Employees Geography, (VARs, Advisors, United States MSPs, ISOs, ISVs) & Canada Data for FY25 or as of 6/30/25 * Non-GA

5. Slide 5: Differentiated Leader in Converging Technology Ecosystem

   Differentiated Leader in Converging Technology Ecosystem Point of Sale (POS) Payment Terminals Physical Security Communications Extend reach with specialized expertise Networking Connectivity Offer channel sales partners flexibility and choice Mobility and Cloud Services Barcode 5

6. Slide 6: A More Focused Business, Built to Drive Growth and Cash Flow

   PROGRESS LAST THREE YEARS A More Focused Business, Built to Drive Growth and Cash Flow Disciplined Growth & Margin Expansion Business Model Shift Capital Use Opportunities  Recurring revenue: Built to  Two strategic acquisitions:  Wrap additional value around one-third of total gross profit added

7. Slide 7: Repositioning ScanSource – Moving to a Higher Margin, Higher Recurring Revenue Model

   Repositioning ScanSource – Moving to a Higher Margin, Higher Recurring Revenue Model Recurring Revenue Now Powers 33% of Gross Profit 3-Year Goal FY25 Build RR GP to FY24 50% FY18 33% RR GP Gross Profit Mix 27% RR GP 13% RR GP GP Margin: 13.4% GP Margin: 13.4% GP Margin: 12.2% GP Margin: 11.7% RR GP

8. Slide 8: Building a Cash Flow Culture – A Strategic Discipline

   Building a Cash Flow Culture – A Strategic Discipline FCF Now a Strategic Discipline FCF Conversion Embedded in our DNA – in incentive compensation (% of Non-GAAP Net Income) 1. Cash focus 2. Working capital 80+%* – strategic pivot discipline Goal: Forecastable 5. M&A 3. Embedded and discipline in c

9. Slide 9: ScanSource Distribution Brings Key Advantages

   ScanSource Distribution Brings Key Advantages: Expands Margin, Reach and Recurring Revenue Broad Capabilities What ScanSource Across Sales Models Distribution Delivers Hardware & Channel Credit Higher Margin Mix 98% RR GP in agency model; Subscription & SaaS 33% total GP from recurring revenue Solut

10. Slide 10: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 10

11. Slide 11: Technology Megatrends Fueling ScanSource’s Growth

    S T R AT E G I C E D G E # 1 Technology Megatrends Fueling ScanSource’s Growth Cloud & Connectivity Cybersecurity Digitization & Channel Enablement Subscription Shift & Infrastructure & AI Automation & Supplier Reach SaaS and cloud-first 5G, SD-WAN, Cloud security Businesses are Suppliers need adopt

12. Slide 12: A Differentiated Leader Delivering Complex Solutions and Advanced Expertise

    S T R AT E G I C E D G E # 2 ScanSource – A Differentiated Leader Delivering Complex Solutions and Advanced Expertise to Accelerate Partner Growth Where We Play – Delivering Differentiated Solutions Highly Knowledgeable Expertise Other Players Low / Order Taker Broad/ Specialization/ Commodity Produ

13. Slide 13: Powerful Differentiators Deliver Supplier Success

    S T R AT E G I C E D G E # 3 Powerful Differentiators Deliver Supplier Success Flexible Specialized Unmatched Accelerated Scalable Go-to-Market Market Expertise Channel Access Demand Operational Generation Execution Supports resale, Deep focus in Connects suppliers Drives faster Delivers agency, and

14. Slide 14: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 14

15. Slide 15: Two Complementary Segments with Distinct Models

    Two Complementary Segments with Distinct Models Category Specialty Technology Solutions Intelisys & Advisory (~76% of Gross Profit) (~24% of Gross Profit) Business • Hardware-centric resale model • Recurring revenue, high-margin agency model Model/GTM • FY25 margins: 10.6% GP, 3.5% Adj. EBITDA* • FY

16. Slide 16: Recurring Revenue Growth Opportunities in Both Segments

    Recurring Revenue Growth Opportunities in Both Segments Recurring Revenue GP as % Types of Recurring Revenue Gross Profit of Gross Profits FY25 ($M) Specialty Intelisys & Total Technology Total Advisory Y/Y% Solutions 33% Agency commissions 27% Managed connectivity Subscriptions/SaaS 13% Hardware re

17. Slide 17: Specialty Technology Solutions: Key Technologies and Growth Drivers

    Specialty Technology Solutions: Key Technologies and Growth Drivers Mobility and POS, Payment Networking Communications Physical Security Barcode Terminals % of Sales* Market Mid Single-Digit Mid Single-Digit Low Single-Digit Upper Single-Digit Low Single-Digit Growth** ▲▲ ▲▲ ▲ ▲▲▲ ▲ - Automation &

18. Slide 18: Case Study: STS Adds More Value with Converged Solution

    Specialty Technology Solutions: Case Study: STS Adds More Value with Converged Solution Situation End Result End User:  Leading Auto Parts Retailer with thousands of stores Advantix mobility solution Channel Sales Partner: enabled VAR to sell hardware,  IT Solutions Provider combined with a Recurr

19. Slide 19: Intelisys & Advisory Segment: Key Technologies and Growth Drivers

    Intelisys & Advisory Segment: Key Technologies and Growth Drivers Connectivity & SDN CX (UCaaS/CCaaS) Cloud/Data Center Security Wireless & IoT % of Net Billings* Market Low Single-Digit ~10%+ ~10%+ ~10%+ ~10%+ Growth** ▲ ▲▲▲ ▲▲▲ ▲▲▲ ▲▲▲ - Demand for high- - AI, automation & - Digital - Advanced - 5

20. Slide 20: Case Study: Intelisys Creates Demand for High Tech Supplier

    Intelisys & Advisory Segment: Case Study: Intelisys Creates Demand for High Tech Supplier Situation Financial Impact End User: Annual Contract Value  Large US law firm with national presence Channel Sales Partner:  Experienced telecom advisor Supplier:  Provider of leading AI-powered communicatio

21. Slide 21: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 21

22. Slide 22: Strong Balance Sheet with Liquidity to Fund Growth

    Strong Balance Sheet with Liquidity to Fund Growth Available Target net FY26 Total committed leverage Free Cash Flow* capacity liquidity ratio* outlook $400M 1x – 2x $90M ~$300M revolver Adj. EBITDA at least estimated At midpoint 1.5x: ~$210M borrowing capacity Data as of 3/31/26; * Non-GAAP measure

23. Slide 23: Our Capital Allocation Framework Going Forward

    Our Capital Allocation Framework Going Forward Invest in the Return Cash to Business Shareholders  Fund high ROI projects  Share repurchases for profitable growth  Disciplined strategic acquisitions 23

24. Slide 24: Disciplined M&A Criteria

    Disciplined M&A Criteria  High margin, recurring revenue businesses Focus: that are working capital light  Expands TAM in growth markets Company Profile /  Adds capabilities Advantages:  Adjacencies to strengthen offerings  Aligns with ScanSource culture and values  Strong mid-term ROIC Operat

25. Slide 25: Recent Acquisitions Support Our Strategy

    Recent Acquisitions Support Our Strategy Acquisition Expands Adds Capabilities / FCF / Aligns With (date acquired) TAM / Growth Expands Adjacencies Operating Metric Culture Technology Advisor (8/24) Managed Connectivity (8/24) Data Connectivity (11/25) 25

26. Slide 26: Proven M&A Track Record – Case Study Intelisys

    Proven M&A Track Record – Case Study Intelisys Acquired in 2016 Aug ‘16  New route to market through advisors FY25  Started cloud distribution journey Acquired Key Segment Transform, Invest and Grow $800M net billings* ~$2.8B net billings 12X -13X EBITDA Results 3.5X >15% CAGR Net billings growth

27. Slide 27: Differentiated Leader. Pivoting to Stronger Growth.

    Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 27

28. Slide 28: Growth Drivers

    Growth Drivers 1 2 3 4 5 Recurring Tailwinds Faster Strategic M&A Tapping Revenue Across Both Partner to Boost Broader Market Expansion Segments Activation Margins Reach Subscription and Intelisys: Multiple GTM paths Acquiring capital- 25,000+ channel agency revenue Boosted by Cloud, boost partner l

29. Slide 29: Strategy to Accelerate Recurring Revenue Growth

    N E W C O N V E R G E D C O M M U N I C AT I O N S B U S I N E S S U N I T Strategy to Accelerate Recurring Revenue Growth Converged Business Unit Share of Wallet Growth Engine  Brings together ScanSource Specialty  Supports Communication VARs in selling more Communications team and Intelisys CX c

30. Slide 30: 3-Year Strategic Goals

    3-Year Strategic Goals Free Cash Flow Recurring Gross Profit Adj. EBITDA Conversion as % Revenue GP as % Adj. ROIC* Growth CAGR Margin* Non-GAAP Net of Gross Profit Income* Build to Consistent 5%-7% 50% ~6% 80%+ Mid-Teens annual basis * Non-GAAP measure; see “Non-GAAP Financial Information” for info

31. Slide 31: Differentiated Leader. Pivoting to Stronger Growth.

    IN SUMMARY Differentiated Leader. Pivoting to Stronger Growth. 1 Executing as the new ScanSource 2 Our strategic edge Stronger 3 Understanding our growth engines growth 4 Clear capital allocation principles 5 The growth path going forward 31

32. Slide 32: Appendix

    Appendix 32

33. Slide 33: ScanSource Two-Tier Distribution Models

    ScanSource Two-Tier Distribution Models Wholesale/Resale Model: Agency Sales Model: Channel Sales Partners sell to End Users Advisors sell to End Users BILLINGS COMMISSIONS Suppliers Suppliers Suppliers Technology Distributor TSD keeps TSD contractual %; sends commission Channel Sales payments to Pa

34. Slide 34: Value Proposition – ScanSource Distribution

    Value Proposition – ScanSource Distribution Value to Channel Sales Partners Value to Suppliers  Deep specialization and technical expertise  Scalable reach with variable cost structure  Enable end-user consumption preferences  Access to multiple routes to market  Industry-leading custom configu

35. Slide 35: Non-GAAP Financial Information – FY25 ROIC

    Non-GAAP Financial Information – FY25 ROIC ($ in thousands) FY25 Reconciliation of Net Income to Adjusted EBITDA Net income from continuing operations - GAAP $ 71,548 Plus: Interest expense 8,013 Plus: Income taxes 22,848 Plus: Depreciation and amortization 30,195 EBITDA 132,604 Plus: Change in fair

36. Slide 36: Non-GAAP Financial Information – Net Leverage Ratio

    Non-GAAP Financial Information – Net Leverage Ratio ($ in thousands) Q4 FY25 Q3 FY25 Q2 FY25 Q1 FY25 Q4 FY24 Consolidated debt (Q/E) $136,149 $138,024 $139,899 $143,649 $144,056 Less: Consolidated cash and cash equivalents (Q/E) (126,157) (146,287) (110,520) (145,044) (185,460) Net debt (Q/E) (non-G

37. Slide 37: Non-GAAP Financial Information – FY25 Adj. EBITDA Margin

    Non-GAAP Financial Information – FY25 Adj. EBITDA Margin Specialty Technology Intelisys & ($ in thousands) Solutions Advisory FY25 Net sales $ 2,942,717 $ 98,093 Reconciliation of Operating Income to Adjusted EBITDA FY25 GAAP operating income $ 66,049 $ 27,214 Plus: Depreciation expense 10,809 158 I

ScanSource — Investor Presentation (May 2026) on 6ix